Robert Manduca
@robertmanduca.bsky.social
1.4K followers 1.2K following 87 posts
Assistant Professor of Sociology, University of Michigan. Studying cities and inequality
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robertmanduca.bsky.social
I have a new paper out! "Should Social Insurance Programs Count as Wealth? Augmented Wealth in Research and Policy." Published yesterday in Socio-Economic Review @sasemeeting.bsky.social doi.org/10.1093/ser/...
Reposted by Robert Manduca
um-src.bsky.social
A new working paper from @umichstonecid.bsky.social/SRC researcher @robertmanduca.bsky.social examining the geography of social transfer programs & implications for cuts to Medicaid & SNAP in the recently signed federal budget.

Also see: equitablegrowth.org/medicaid-and...
Reposted by Robert Manduca
equitablegrowth.bsky.social
"Cuts to social programs will have a major impact on local economic activity." Social programs are a key part of the regional economic base. @robertmanduca.bsky.social on how Medicaid and SNAP cuts in the #ReconciliationBill will negatively impact local economies:
equitablegrowth.org/medicaid-and...
robertmanduca.bsky.social
A lot of the discussion of the reconciliation bill has focused--rightly--on the consequences for beneficiaries of these programs. 11 million people are at risk of losing Medicaid coverage, and 4.5 million stand to lose SNAP. That's a ton. But the economic impacts may be even more widespread
robertmanduca.bsky.social
In Kentucky's 5th congressional district, recently profiled by Arlie Hochschild for @nytimes.com, Medicaid makes up a quarter of the entire economic base. The SNAP and Medicaid cuts would be like losing one-third of all traded private sector industries

www.nytimes.com/2025/06/09/o...
Opinion | My Journey Deep in the Heart of Trump Country
www.nytimes.com
robertmanduca.bsky.social
If we look just at the proposed *cuts* to Medicaid and SNAP, it's the economic equivalent of Maine losing its entire forestry and paper manufacturing industries, all at once--or Alaska losing 60% of its oil and gas industry.
robertmanduca.bsky.social
Put another way, Medicaid contributes roughly as much to Detroit's economy than car manufacturing, more to Houston than the chemical industry, almost twice as much to Los Angeles as motion picture production--these are big numbers!
robertmanduca.bsky.social
Shifting from economic geography to policy, what does this mean for the current reconciliation bill? The House version is set to cut Medicaid and SNAP by about $1.2 trillion over the next 10 years--that's roughly a 12% cut to Medicaid and 27% to SNAP www.cbo.gov/publication/...
Estimated Budgetary Effects of H.R. 1, the One Big Beautiful Bill Act
As passed by the House of Representatives on May 22, 2025
www.cbo.gov
robertmanduca.bsky.social
What's driving the change? @innovateeconomy.bsky.social reported last fall about the "Great Transfer-mation" across the US, attributing it to 1) aging populations, 2) rising healthcare costs, and 3) slower earnings growth eig.org/great-transf...
The Great Transfer-mation - Economic Innovation Group
Explore your community’s reliance on government transfers through EIG’s Great Transfer-mation Project.
eig.org
robertmanduca.bsky.social
In some parts of Florida--looking at you, Cape Coral--traditional traded industries make up just *5 percent* of the economic base. The rest of the economy is based on retirement savings, pensions, Social Security, Medicare, etc.
robertmanduca.bsky.social
Financial income made up another 26%. Traded sector earnings were just 24%: less than either of the other sources, and down from 35% in 2001
robertmanduca.bsky.social
I compute the share of *all* economic base income that comes from transfers, financial income, and earnings in traded industries (the standard definition). The results are pretty striking: in 2022, transfer payments accounted for *40 percent* of the economic base across US regions
robertmanduca.bsky.social
Usually, researchers define the economic base = traded industries only. But selling products to other cities or countries isn't the only way money can enter a local economy. I explore two other sources: financial income and government transfers. Like exports, these payments sustain the local sector
robertmanduca.bsky.social
The two sectors play different roles in the local economy: most residents are employed by the local sector, which typically accounts for about 2/3 of jobs. But the traded sector is the ultimate foundation of a region's economic viability--its economic base

www.tandfonline.com/doi/abs/10.1...
The Economic Performance of Regions
P ORTER M. E. (2003) The economic performance of regions, Reg. Studies 37 , 549-578. This paper examines the basic facts about the regional economic performance, the composition of regional economi...
www.tandfonline.com
robertmanduca.bsky.social
Other industries--some examples are restaurants, grocery stores, home construction, mechanics--serve local, not national/global demand. These are the "town fillers," now usually called the "local" or "non-basic" sector
robertmanduca.bsky.social
Basically, some industries--think manufacturing, farming, etc., but also film production or high finance--sell their products on national or global markets, bringing money into their local economies. They're the "town builders", which modern scholars call "traded industries" or the "basic sector"
robertmanduca.bsky.social
The starting point is Economic Base Theory--a classic concept in economics and geography going back at least to Werner Sombart's 1916 classic "Der moderne Kapitalismus", which made the distinction between "town builders" and "town fillers"
robertmanduca.bsky.social
New working paper alert! Posted at @equitablegrowth.bsky.social, it investigates the economic geography of social transfer programs and financial income--with implications for the Medicaid and SNAP cuts proposed in the reconciliation bill 👀

equitablegrowth.org/working-pape...
Financial and Transfer Income as Components of the Regional Economic Base
Government transfers and financial income form a major component of the basic sector in the United States.
equitablegrowth.org
Reposted by Robert Manduca
equitablegrowth.bsky.social
Reductions to essential public programs in the budget reconciliation bill impact more than beneficiaries. They affect key service providers, local businesses, and community stability.

@robertmanduca.bsky.social on Medicaid and SNAP cuts impacting local economies:
Medicaid and SNAP cuts in congressional Republicans’ budget bill will negatively impact local economies
New research shows how cuts to Medicaid and other social programs negatively impact local economies as well as program beneficiaries.
equitablegrowth.org
Reposted by Robert Manduca
us.theconversation.com
Social Security, unemployment insurance and child tax credits are in a sense assets that aren’t usually counted up when discussing wealth and #inequality. A sociologist explains how these benefits are worth far more in countries like Norway: buff.ly/yA3Ljst By @robertmanduca.bsky.social @umich.edu